1 Hybrid Leader Drops Plans for Electric Vehicles


Toyota (NYSE: TM  )  is doubling down on hybrids, with 21 new or full-model changes to be rolled out by the end of 2015. However, the downside to hybrids is that margins are lower than for conventional vehicles, and now Toyota has announced that it has dropped plans for widespread sales of its hyped electric mini-car, citing a "misread market."

 

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Austin Smith owns shares of Ford. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On September 30, 2012, at 8:54 PM, neamakri wrote:

    "the downside to hybrids is that margins are lower than for conventional vehicles" Margin is a percent. As one man said "there are lies, damn lies, and statistics."

    Hybrids sell for more money. So does Toyota actually make more profit on the sale of each hybrid vehicle compared to the same non-hybrid? If a customer wants a hybrid and is willing to pay more, then who's complaining?

    That sounds like whining from a recent MBA graduate who has no feel for real world salesmanship. He/she sees the bottom line on the spreadsheet and thinks "gee we're not making as much MARGIN on hybrids". Spreadsheets are nifty but they don't sell cars.

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